Developer chosen for Gateway Town Centre project
Developer chosen for Gateway Town Centre project
Raising our profile along the Yellowhead Trans Canada Highway
The City of Spruce Grove has taken a significant step toward raising its profile along the Yellowhead Trans Canada Highway by entering an ‘Option to Purchase’ agreement with WAM Beaverbrook Spruce Grove JV Ltd. to develop the Gateway Town Centre.
“This agreement marks an important milestone in the process of developing the Gateway Town Centre and we are pleased to have the opportunity to work with developers who share our vision for this project,” said Mayor Stuart Houston.
“Our city’s position at the western gateway to the Edmonton region and the eastern gateway to the Rocky Mountain tourism region, Northwest Alberta and Northeast B.C. has significant potential that can be realized with a development like the Gateway Town Centre,” said Mayor Houston. “This concept parallels the vision identified by our residents through Spruce Grove Quest and will be single largest step forward we have ever taken in terms of our local economic development.”
The City of Spruce Grove has long been seeking an opportunity to capitalize on its proximity to the Yellowhead. The Gateway location along the Yellowhead Highway at the Century Road interchange was identified as the ideal site to do so. The City already owned land in the area and subsequently purchased additional properties to assemble a 126 acre (51 hectare) parcel.
“The City’s decision to assemble the land for this development was the catalyst that resulted in the project moving forward,” said the mayor.
Beaverbrook Developments President George Cantalini said the time has come for a development of this magnitude in Spruce Grove. “We have had the pleasure of watching and participating in the community’s growth and maturity and are excited about getting involved in this opportunity,” he said. “We have been doing business in Spruce Grove for the past six years and have found that the community and the City government is by far the most progressive in the Capital Region. Our company has its largest land holdings in Spruce Grove and we are excited to continue to invest in Spruce Grove.”
WAM Development Group Partner Darren Durstling said the company is pleased to be involved with such an exciting project. “The strategic location of Gateway Town Centre will ensure a successful mixed use development,” he said. The Mayor of Spruce Grove along with the Administration has been very helpful in this process and we look forward to working with them as the development unfolds.”
WAM Beaverbrook Spruce Grove JV Ltd. will purchase the land from the city in increments as the development proceeds, and will pay the interest on the debenture the city used to assemble the lands. This is a joint venture between two reputable developers with solid track records – Beaverbrook Developments Ltd. and WAM Development Group.
Beaverbrook is primarily a residential developer with major projects in Spruce Grove, the Edmonton Region and Fort McMurray. WAM is mainly a developer of commercial properties with substantial holdings in Edmonton and Calgary.
The agreement requires the developers to complete an Area Structure Plan and Subdivision Plan for Council approval within 12 months which will implement the Gateway Town Centre concept that was accepted by Council late last year. It is expected that site development will begin in 2011.
The Gateway Town Centre concept was developed by MXD Development Strategists and presented to City Council in October 2009. It calls for the development of a multi land use urban centre that will generate major economic development for the city. The MXD study estimates that the economic impact of the Gateway Centre development by 2015 will be $135 million in new construction, as many as 1,500 direct and indirect construction jobs, 881 permanent jobs and $2.25 million in annual tax revenues to the City.
The City’s selection of WAM and Beaverbrook as its development partners came out of a request for proposals issued in September 2008. The difficult economic conditions over the last year resulted in delays in securing an agreement. With approval of the Gateway Town Centre concept plan, assembly of the land in the area and improved economic outlook, the agreement was recently finalized.